Community Infrastructure Levy & Developer Contributions Guidance

The Community Infrastructure Levy (CIL) was introduced by Government in 2010 as a means for Local Planning Authorities (LPAs) to fund infrastructure required to support development proposed in a Local Plan. Levy charges are required to set out in a charging schedule which must undergo public examination.

The Council's CIL Charging Schedule was approved by the Inspector on 10/02/2015 following submission for examination on 31/10/2014, under Section 212 of the Planning Act 2008, following a 6 weeks consultation period held between 08.08.14 and 19.09.14.

The Council at its meeting on 15/04/2015 agreed to commence introduction of charging on 1st June 2015. No changes to the submitted draft CIL were required by the Inspector and the details set out in the Charging Schedule have been approved by the Council. The Council has also published policies on exceptional circumstances relief and payment in kind.

The Council has produced a Community Infrastructure Levy Guidance for Landowners and Developers document which sets out in detail how CIL will operate in the District. This provides information on the key processes and procedures that applicants should be aware of and adhere to. It also provides links to the forms that applicants will need to complete to ensure compliance with these processes. It sets out the penalties that will apply should applicants fail to adhere to these processes e.g. additional surcharges. It also includes the Council’s instalments policy for payments of CIL.

The Community Infrastructure Levy is designed to be a fairer and more efficient way of funding the necessary infrastructure than the system of negotiating individual planning obligations (S106 agreements) mostly on larger developments. However there continues to be a more limited role for planning obligations. Infrastructure is defined for this purpose as including roads and other transport infrastructure, flood defences, schools and other education facilities, sport and recreation facilities (including open spaces) and medical facilities.

The CIL charge can be applied to most new developments (excluding affordable housing and development by Charities). It is charged in £s per square metre of the gross internal floorspace of buildings net of demolitions. The CIL charging rate is arrived at using evidence of infrastructure needs, funding gaps and development viability.

The schedule sets out a charge of £40 per square metre for residential developments, excluding specialist retirement developments, £60 per square metre for some retail developments (large foodstores and retail warehouse/retail park developments only) and a nil charge for all other forms of development. Accompanying the schedule is a list of projects (Regulation 123 List) taken from the Infrastructure Delivery Plan, which will be partly or wholly funded from CIL.Regulation 40 of the CIL Regulations (2010, as amended) requires the Council to adjust its base CIL charging rates in line with the BICS All in Tender Price Index, based on the year in which the planning permission is granted. Indexation effectively seeks to ensure that adopted CIL charging rates are kept up to date in a consistent manner nationally. For 2017, the indexation increase will apply to planning consents from 1st January 2017. Applying indexation for 2017 results in the following chargeable rates - Residential - £42.16 and Retail - £63.24.

The CIL charging rates from 1st January 2018 are Residential - £45.87 and Retail - £68.80.

The Developer Contributions and Housing Choices SPD refers to the Council operating its affordable housing policies in accordance with any nationally prescribed thresholds for seeking contributions. The Council will also now be applying Vacant Building Credit as per the updated NPPG. Please see the National Planning Policy Guidance (NPPG) for further information on thresholds and vacant building credit.

CIL Financial Reports

In addition Parish and Town Councils are required to produce an annual report for each financial year setting out the amount of CIL receipts received: spending of CIL receipts; and the amount of CIL retained by the Council for future spend. Where these are not published on the Parish or Town Council websites they are provided on the District Council’s website. Please see any relevant reports below: